What Do Economists Expect From The Fed?

A wonderful sheep-like 88% of all economists surveyed in a recent Bloomberg poll believe QE3 is inevitable - up from 76% at the end of July. 64% are convinced the LSAP will be announced tomorrow. Perhaps more interestingly, given the reality of flow over stock efficacy, 32 of the 73 expect an open-ended QE program - of around USD65bn TSYs or USD35bn MBS per month. In line with our own market-implied expectations, the median estimate for QE3's size is USD700bn (split between TSYs and MBS - which likely reflects the size constraints of the Fed's already huge dominance of the TSY market). Perhaps most surprising is that only 68% expect an extension of the rates guidance - and paradoxically, given all these expectations for moar money, is that 49% of those surveyed believe Fed policy is too easy. Perhaps this response best sums up the quandary that the Fed finds itself in, sadly, "Disappointing the markets doesn’t seem like a good strategy, but it’s not obvious how much more GDP to expect if they fulfill market expectations for more action."

The Fed is stuck in printing mode to support banks until the banks are solvent. And that will never happen with all the leverage in the system and allowing them to lose money in the global casino. They will continue to print money to loan to the government and bankers while creating a dynamic that keeps money from ever going into the real economy where there is an actual risk. Hyper stagflation will result. The Fed will figure that out in about 5 years and punch the big reset button to give the bankers all the money they need and then cut them off.

"Every conservative in the country will be committed to ending the Fed" WTF? You mean like Paul and Kucinich. In case you haven't noticed. 98 % of everybody in the federal government is on board with the plutocracy the whole CFR global fascism thing that wouldn't be without the Fed. Thare are no conservatives. Apparently you do not understand Ayn Rand.

10 million Iphones sold...that is all I am hearing today....kids on vacation in Chicago...oh and some Americans got killed in Egypt...must of been our fault...cause the State department apologized.....

The euro is good - to - go! Why would anyone sell euros? (Why is the euro so costly when an out-and-out currency run is underway? The CHF euro reserves speak for themselves!)

Germany is going to sacrifice its own economy for Spain's (let's keep Italy out of this).

Failure can be kept at bay for months/years: all that is required is one day, one bit of lying foolishness at a time and millions of those willing to be fooled. Nobody wants a greater depression, right?

Something will come up during the next five years or so of stalling. Romnobama will elected-then-retire, memoirs will be written, blame will be cast, scapegoats will be hanged and none of them will be bankers (environmentalists).

It's getting colder, a new Ice Age is due to begin, we can get gigantic armored pickup trucks and SUVs that get 100 mpg using common vegetable oil available at any grocery store. Our resources are inexhaustible (at current rates of consumption). Every backyard will feature its own Thorium fueled liquid metal fission reactor. All that is necessary for happy days to arrive is for the 'consumer to borrow again (against the 'value' of his/her so-called 'home': a thrown-together particle board and plastic shack stuck in the middle of a gigantic automobile slum).

Meanwhile, the central banks will become the sole providers of credit. The private sector will merge with law enforcement to become debt collectors.